Posted 1/29/2019 09:24 (#7281200 - in reply to #7280891) Subject: Not sure if you
Were asking the question to be answered or just for argument . But here goes
If we were short of Beans, tariffs would most likely be a non factor or close to a non factor,. But because there is ample supply it does effect values in 2 ways , first way is that tariffs determine who will be stuck carring all residual beans which is a huge factor on basis and especially in the areas that direct ship to the tariffed countries.
Secondly with the low prices Brazil should have had signals to cut production but the tariffs on US product allowed Brazil to pick up the extra $2.50 per bushel so instead of low prices forcing SA to cut production the opposite actually happened and Brazil up production and also got to sell everything they produced at a $2.00+ premium to US production.
And that fact will be what is hardest on US producers
Class 3 milk
